Lorain’s Lost Housing and Political Machinations

October 27, 2015 at 12:20 pm 8 comments

machinationsThe last days of Lorain’s election are bringing out the sound bites of political machinations .

I don’t get involved in the who is who – vote for- aspect BUT I have heard over and over again both in the real media and social media the surface knowledge of Lorain’s Housing being used as fodder for the “vote for me” campaigns .

Unfortunately, I am of the opinion neither Mr. Tim Carrion (IND) or Ms. Jesse Tower (REP) have looked at the housing issues in-depth. These issues have become mythered with politics and this will sound good to the voting public campaign rhetoric !-Lorain deserves educated observations and decisions not sound bites for print.

Ms. Tower stated in the Chronicle Telegram article yesterday
http://chronicle.northcoastnow.com/2015/10/26/ritenauer-taking-no-chances-with-campaign/

Tower said the $100 inspections are unfair to property owners and reduce housing sales, increasing blight.

“The government should be there to help the residents, not to hinder the residents,” Tower said. “If you want to buy a falling-apart house, then why is the government telling you not to buy it?”

I am afraid I emphatically disagree- I have fought blight and have gone before government committees and courts in Ohio and Washington DC with regard to blight and blighting neighborhoods. – $100 housing inspection costs DO NOT Increase Blight – far from it !
https://thatwoman.wordpress.com/2009/02/07/remember-the-staubach-report/

Oh! Ms. Tower , you are much mistaken in the fact the majority of Lorain substandard homes were being purchased by people wanting a home – for the most part these “old houses” were being traded back and forth by LLC’s and “property managers”. They are listed in this link
https://thatwoman.wordpress.com/2013/07/05/the-nuisance-and-point-of-sale-ordinance-lorain/

and some more out of town-ers are still causing issues to families – read it and weep.
https://thatwoman.wordpress.com/2015/09/17/the-follow-up-a-tale-of-two-houses-city-council-loraine/
Safety-Checks-for-Your-Home

Every single person who wishes to purchase a home in Lorain should be assured their property meets “minimum standards of safety”. $100 for an inspection is cheap to make sure a child goes to bed without the threat of a faulty furnace, a mother and father know the plumbing will not haunt them and lead paint is not an issue.


Mr. Carrion also had his say

Of the vacant homes, 171 were graded D and 95 graded F. The study recommended demolishing all the D and F buildings. However, Carrion said there should be greater focus on rehabilitating homes.

Mr. Carrion for your edification
http://www.wrlandconservancy.org/pdf/LorainVacantPropertyInventory.pdf

“If some things need to be torn down, let’s do it,” Carrion told Young Tuesday. “But you can’t just take a wrecking ball to everything. Some things need to be salvaged.”

Unfortunately Mr. Carrion – easier said than done. Using Federal/ State funds has some serious rules and repercussions ( as mentioned when Lorain broke the rules and bent them in “previous years under the old Community Development Dept) and they frown upon rehabbing a house for 30 , 40, 75 or $100 thousand when Lorain’s market value for homes, in these older neighborhoods, are selling for 10-22 thousand – thanks to a lot of bank dumping and LLC’s.
https://thatwoman.wordpress.com/2012/07/11/banks-banking-on-lorain-business-of-blight-devaluing-lorain/

LaurelPatriot

Lets take a wander through some business practices here in Lorain. One property management company JB Patriot Properties ( Jerrod Biebrick- who appeared before Magistrate Cook last week-
https://thatwoman.wordpress.com/2015/10/22/housing-court-and-you-lorain-continued/

I did a quick check of only 40 properties of the 80 Mr. Biebrick stated he owns- of those 37 are delinquent in their taxes for over $150,000 dollars total.

I can’t see where any attempt was made to pay down the taxes in the years he has owned the properties. Also, look at the sale prices of just one page from the auditors site –
( sale prices listed far right)
sale prices biebricresk

These properties have taxes owing on them for years – The property he states on his articles of incorporation on the 11 LLC’s he holds is 1101 34th Street.

1011 34th Streetjb

1101 34th Street- purchased in 2009- for $10,900- from yes another familiar bank- US Bank NA- even has taxes owed on those prestigious corporate offices – the real estate tax for this “building” is $711.22 cents per year and owed is $3,791.24 – ( YOU DO THE MATH how many years of back taxes???)

Can you honestly believe if the county foreclosed on these properties the amount of money that would be needed to rehab them would be available ?

Oh Yes !I can just see it now – properties whose highest sales price- per my example Mr. Biebrick was a mere $17,500. Yes! I can certainly see the state and federal programs throwing money into any one of these properties – I THINK NOT!!!! nor would I want them too.

These examples do not take into account the George Schneider properties( 37 of them in the demo line)
https://thatwoman.wordpress.com/2014/09/20/george-schneider-a-property-legacy-what-now/
the Lew Strnad properties – the wheeling and dealing , trading and dumping going on before January 2014. Oh! there are more out there believe me – I look at them every day in this Lorain’s oldest neighborhood.

Let us look at the most recent demolitions and how they got to be razed- this was not the fault of this city it is the fault of business practices that I believe are at the very least unethical.

1223 W 6th Street. Lorain made the front page of the local media
PicMonkey Collage1123

http://www.morningjournal.com/article/mj/20150804/NEWS/150809843
http://chronicle.northcoastnow.com/2015/08/05/lorain-demolitions-off-to-a-smashing-start/

This home was demolished at a cost estimated for each demolition of $25,000 – the neighbors cheered – but HOW did we end up demolishing this property?

The county acquired it through non-payment of taxes in the amount of $12,883.05- the yearly taxes were $692.16 –
tax history 1223res

This is not a case of some poor out of work family unable to keep up with their taxes.

This property was purchased by yet another LLC EAI Investments
EAI investments
EAI LLC info

THEY didn’t pay the taxes.

Perhaps Mr. Ernest and Alice Iseminger couldn’t afford to pay their taxes- One would have to wonder if that were indeed the case since Mr. Ernest Iseminger was in fact (according to LinkedIn) during his time here in Lorain County Vice President, Development and Alumni Affairs Oberlin College and is NOW –
Vice President, Advancement and External Relations at Claremont McKenna College.
His wife, Alice- the Owner, Seniors Helping Seniors Cleveland/Akron, Ohio Area Individual and Family Services

Now I think they could have managed to pay the less than $700 a year in taxes on this property. According to the neighbors, the day I watched the home being demolished, it was rented out and left to its own decay.
history 1223photo

So EIA Investments -it seems – rented it out- and the non payment of property taxes continued to climb – and now WE the taxpayers ( because this is where the money ultimately comes from – ) pay to have the property taken down. I certainly hope the Lorain County contacts EAI Investments and the Isemingers to recoup some of these costs. ?

UPDATE: I heard back from the county re the actual cost of demo on this property
This particular unit was demolished at a cost of ~$11,000.00. the rear unit on the site cost ~$8000.00.
1223 and a halfres

so the total of all structures is $19000.00.Cost includes, legal, title exams, asbestos survey, abatement, demo and site restoration

This is just an example of the nine properties mentioned in the article 3 were bank foreclosures ( Citi Bank and Fannie Mae) two possible deaths – and 907 W 9th under the name of Jeremy Brogan – Mr. Brogan is still listed as owning property according to the Lorain County Auditors site
Brogan listingsres

My concern is the lack of knowledge both by politicians running for office and the citizens of this community as to the real business of “affordable housing” in Lorain. I don’t think we can afford the business practices of – buy it cheap- rent it out- forget the taxes- and walk away . Because according to Prosecutor Will and County Treasurer Mr. Talarek from the Chronicle

http://chronicle.northcoastnow.com/2014/09/26/judge-enters-payment-plan-pay-back-property-taxes/

The county has stated via Mr. Wills the prosecutor in the article fro
Will said when he first took office in 2005, the county took a much harder line on trying to collect back property taxes than it does now.

He said that once the property market headed south, many of the properties lost value and it became harder to foreclose and subsequently sell the properties for enough money to justify the expense.

Property that is foreclosed on must be assessed, and the county must try multiple times to sell it at sheriff’s sale.

“It costs a lot of money to foreclose on a house,” Talarek said.

If the land doesn’t sell, Will said, it could become state property and it could be sold at an auditor’s sale, but it would be unlikely to go for enough to cover expenses, let alone the back taxes.

“Sometimes it becomes counterproductive to be aggressive,” he said.

And those in the businesses of “walk away ” rentals KNOW THIS! And now Ms. Tower and Mr. Carrion hopefully you know it too. Lorain’s housing is more than a sound bite !

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Entry filed under: a Cow -elle opinion, city of lorain, commentary, Lorain Multi Property Owners, notorious opponents of exactitude. Tags: , , , , , , , , , , , , .

Housing Court and You – Lorain- Continued Politics – Park- Reservation- and a Presidential Candidate

8 Comments Add your own

  • 1. maryspringowski  |  October 27, 2015 at 7:34 pm

    18 years of back taxes! That was the W.6th property. WHY is the county not going after these tax scofflaws sooner? WHY is it taking so long? Who is responsible for this? Are they an elected official? If so, then they are NOT doing their job! How many MILLIONS of dollars is this county owed? And what is the subsequent cost to the cities? They’re the ones who have to deal with the demolition of these houses and the devaluation of neighboring properties. This is is ridiculous and there is NO excuse for it!

  • 2. thatwoman  |  October 27, 2015 at 8:17 pm

    I checked with the auditor in February of this year and at that time – hopefully you are sitting down 34 million county wide- The county prosecutor Dennis Will is the one to go after the taxes after the County Treasurer Talarek sends it to him and after the Auditor sends the information to him. They don’t want these buildings and homes as more taxes are owed ons ome of them than they are worth ( see the last paragraph in the above post) To me these people KNOW this and get what they can from the property and then walk away…….. and we are left holding the tax bill , the property and then the demo or rehab…….

  • 3. Dennis Flores  |  October 29, 2015 at 1:24 pm

    Hey, vote for meee, I will knock down every vacant home in Lorain, well, maybe, as long as your (legally) registered to vote 😉

    Oh and they shoot zombies (zombie mortgages) don’t they?
    How many remember Bonk’s Café across from the United Polish Club on Long ave. when it was a bar back in its hey-day then it closed and became apartments, then caught fire and the thugs took it over and according to the LC Auditor its owned by HSBC 636 Gran Regency Brandon, FL 33510. One click on the Values tab: Market Total Value $13,940..00 next tab Taxes: Delinquent Special Assessment: $100,932.83 Unpaid Taxes: $20,313.18 Full Tax Year: $124,124.27 O.M.G., do the math on this one…

    Cha ching, bada bing and what about the historic UPC 701 W 17th St., Tax Bill Mailed To: P O BOX 32 LORAIN, OH 44052
    Unpaid Taxes: $35,130.86 Full Tax Year: $44,545.16

    I’m just elated we have someone who writes it like it really is.

    Thanks,
    Lorraine

  • 4. thatwoman  |  October 29, 2015 at 1:33 pm

    You are welcome Dennis – any news on the Broadway Building ? BUT at least the taxes are up to date 😉

  • 5. Dr. Tammy  |  October 29, 2015 at 2:48 pm

    If Spitzer (or whomever owns it now) would donate the property (Broadway Building) to the city, that demolition could easily bring in a new hotel, paying for the cost of demolition. Spitzer is still trying to ‘sell’ it for 2-3 million, at that price, no hospitality business would take it for obvious reasons! And, if Spitzer wanted to, he could have part ownership in the new building! Recouping some of his losses.

  • 6. thatwoman  |  October 29, 2015 at 3:20 pm

    maybe they are waiting to see what happens with the monopoly marijuana vote- pot hotel 😉

  • 8. Norbert Stager  |  September 8, 2016 at 11:33 am

    I believe stiffer penalties or enforcing cutrrent laws to get the tax cheats to pay up.

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